Euro dips after ECB's Constancio says can decide on QE in Q1

LONDON: Euro dipped to a day's low on Wednesday after European Central Bank Vice President Vitor Constancio said that the bank will be able to gauge in the first quarter of next year whether it needs to start buying sovereign bonds.

The euro slipped to $1.2454, down 0.15 percent on the day from around $1.2467 before his comments. Constancio also said that buying sovereign bonds, or quantitative easing, would influence inflation expectations and the euro.

The euro has shed more than 9 percent against the dollar so far this year, as investors priced in a chance of outright bond-buying by the ECB as it grapples with sluggish growth and the threat of deflation.